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Why Every Trade You Open Seems to Lose

The Duomo Initiative
5 min readOct 15, 2024

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Why does it feel like the market’s against you, and every time you open a trade, you lose?

There’s probably a good reason, and it might not be what you think. I can tell you, it’s not just bad luck or that the Market Gods are against you.

Whenever I see people saying things like, “The trade didn’t go to plan”, or “Every trade I open is a loss”, when I dig a bit deeper, it’s usually the same situation.

Most traders structure their trades with favourable risk-reward ratios. It’s what everyone’s told to do, and in many cases, it makes logical sense for the opportunity. It’s also likely causing you problems.

Firstly, what do I mean by asymmetric risk-reward?

It’s really simple: one side of the potential outcomes is larger than the other. For example, if the bullish outcome is 80 pips and the bearish outcome is 20 pips, and you’re going to be entering a long trade, it’s a 1:4 risk-reward ratio. For every 1 you risk, you have the potential to earn 4.

This isn’t inherently a problem — in fact, most of my trades are asymmetric too.

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The Duomo Initiative
The Duomo Initiative

Written by The Duomo Initiative

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